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Impact of COVID – 19 on Insurances



Type of Policy
Implication
Regulatory Intervention
Remarks / Expectations
Medical Policies
Coverage includes hospitalization due to COVID 19 if undertaken in private medical establishments
1.IRDAI has instructed all insurers to carry the message of coverage in their websites
2.For premium falling due between 25th March – 14th April , IRDAI has allowed premiums to be paid by the 21st of April 2020 by amendment of Sec 64VB of the Insurance Act.
3. Per IRDAI, insurers to condone delay in payment of renewal premium up to  30 days in all individual health policies 
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Life Policies- Retail
Coverage includes death due to COVID 19
1.IRDAI has instructed all insurers to carry the message of coverage in their websites
2.Additional grace period of 30 days given for renewal premiums payable in the moths of March & April 2020  
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Motor Policies
Change in 3rd party premiums
1.IRDAI has kept its annual 3rd party rate hike on hold beyond 31st March 2020
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Motor Policies
No direct impact
2. For premium falling due between 25th March – 14th April , IRDAI has allowed only 3rd party premiums to be paid by the 21st of April 2020 by amendment of Sec 64VB of the Insurance Act   
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Personal Accidental Policies
No direct impact, as COVID related deaths are not treated as accidental deaths
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Property Insurances
No direct impact. However due to “Work from Home” measures advised by GOI, a few businesses have moved business assets to employees residences. Suggested that at-least intimation of such movement are made to the insurance companies 
1. IRDAI has instructed all property related insurers to include COVID 19 related exclusions as part of the standard exclusions 

Given the complete lock down situation especially during end March (being financial year end) industry was expecting IRDAI to extend benefit of short period policies by payment of pro-rate premium
IRDAI / Insurers response to movement of business assets to employees residences is still awaited  

Travel Insurances
Lockdown situation has resulted in few instances of trip curtailments, trip cancellations, etc., situations
IRDAI has allow travel insurance policyholders to extend the start/end dates of policies valid between March 22, 2020, and April 30, 2020
IRDAI’s intervention on claims settlements arising out of trip curtailments is still awaited
Business Interruption Policies
The predominant business interruption policies offered in the Indian market are interruptions arising out of named perils, viz., Fire Loss of Profits, Machinery Loss of Profits, etc.,
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COVID 19 Policies
Quite of few of the insurers have launched policies (both indemnity/benefit plans) specific to the COVID 19 virus
While a few have been launched through IRDAI sandbox route, others have been launched directly. However most of the benefit plan have already been discontinued even before full awareness of the product has percolated in the market 
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It is suggested that IRDAI comes to guidelines on the minimum duration of the launch period, pricing , etc.,
Reinsurance Programs
Due to global lockdown mode, the reinsurance arrangements / treaties renewals entered by insurers will get impacted. Further  insurers need to file Board approved Re-insurance program as also synopsis of catastrophe modeling report with IRDAI by the 30th April 

IRDAI has extended the date for filing of  the same by 31st May 2020
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